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A common misconception in this country is that the life insurance industry makes its enormous profits by wisely investing the money its companies collect in premium payments. So wisely so as to make a significant profit after paying the policy owner the death benefit. This is simply not the case. The life insurance industry's profit comes from its “lapse rate.” The higher the life insurance company‘s lapse rate the higher its profits. All the money it has collected from the policy owner in premiums since the policy was issued is pure profit since the policy will never pay a death benefit. Every day many billions of dollars in life insurance coverage expire because the policy owners are no longer able to pay the premiums on their policies, which are then are then canceled by the carrier. This is a criminal shame - and in many cases it doesn't have to happen. An option is available for many policy owners. Most people in this country, and even many elder law attorneys, tax accountants, bank trust officers and other estate planning professionals, are unaware of the life settlement option available to senior citizens at risk of having their life insurance policy expire because they can no longer afford to make the premium payments. A senior life settlement is the sale of a life insurance policy to a third-party investor. The seller receives a cash payment for the policy and is relieved of the burden of the premium payments. The purchaser/investor becomes the new owner of the policy and assumes the responsibility for the premium payments until the policy matures upon the death of the insured. The new owner then collects the death benefit of the policy. Capital Trusts will work to get the highest offer possible for the sale of your client's policy. We do this by shopping the life insurance policy to several large national and international investors. When life settlement investors know that they have to bid against other investors for your client's policy, you can be assured that your client will be getting the best price and terms possible. Most Americans discuss their life insurance protection only with a life insurance agent. This is a mistake. They should discuss their own unique insurance needs and personal financial capabilities with an estate planning professional whose only concern is their clients' best interest - and not earning a larger commission on a sale. No life insurance company is going to give your clients the best return on their life insurance policies by what they call a “cash back” or “cash in.” We call it a “cash surrender.” And neither is a direct sale to a life settlement company. To ensure that your clients get the greatest price for their existing life insurance policies, let Capital Trusts work for the highest possible offer from several investors. Before you allow any of your clients to give their active life insurance policy back to the insurance company, or more disastrously let the policy expire through nonpayment of the premiums, give Capital Trusts a call. There is never any cost or obligation to make an application for a senior life insurance settlement with Capital Trusts. Capital Trusts, Inc. For more information please visit us at: www.capitaltrustsinc.com |